Jennifer Is the Only Employee of Her Sole Proprietorship

question 116

Multiple Choice

Jennifer is the only employee of her sole proprietorship. She is entertaining the idea of hiring an additional employee. She knows that on her own she can produce 100 units per day. Jennifer figures that Applicant A will help her produce 175 units per day whereas Applicant B will help her produce 155 units per day. Which of the following statements is MOST accurate?

• A)Applicant B has a marginal product of 75 units.
• B)Applicant B has an average product of 77.5 units.
• C)Applicant A has a marginal product of 75 units.
• D)Applicant A has an average product of 87.5 units.

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Definitions:

Energy System

Biological systems in the body that convert food and nutrients into energy for physical activity, including aerobic, anaerobic, and ATP-CP systems.

Glycolysis

A metabolic process that breaks down glucose to produce energy in the form of ATP.

ATP

A molecule known as adenosine triphosphate serves as the primary energy carrier within cells, essential for metabolism.

Volume of Oxygen

The amount of oxygen the body can utilize during maximum effort, often used as a measure of cardiovascular fitness.